Employer of Record in Norway

What is an Employer of Record in Norway?

An Employer of Record (EOR) in Norway is a strategic partner that acts as the legal employer for your employees residing in Norway. The EOR takes on all employment responsibilities and liabilities on your behalf, handling payroll, benefits, taxes, and regulatory compliance.

By partnering with an EOR, you can hire employees in Norway without the need to establish a local entity or navigate complex labor laws.

General Information

• Currency: Norwegian Krone (NOK)
• Employer Taxes: 14.10%-19.10%
• Payroll Frequency: Bi-Monthly / Monthly
• Employee Costs: 8.2%
• Capital: Oslo
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: Norway does not have an official national minimum wage; instead, minimum wages are typically defined by collective bargaining agreements for individual sectors and employment contracts.

Payroll

Payroll Cycle: In Norway, the payroll frequency is agreed upon by the employer and employee in the employment contract. However, salary payments must be made at least once a month.

13th Salary

There is no mandatory provision for a 13th-month salary in Norway. Performance-based bonuses are granted at the discretion of the employer.

Working Hours

General: Full-time employment in Norway typically involves a maximum of 9 hours per workday or 40 hours per week.

Overtime: Any work performed beyond the standard workweek is considered overtime and is governed by employment contracts and collective agreements. There are limits on the number of overtime hours allowed, including a maximum of 13 hours in a 24-hour period, 10 hours in a 7-day period, 25 hours in a 4-week period, and 200 hours in a 52-week period.

Overtime hours beyond 40 hours per week are typically compensated at a rate of 140% of the employee’s regular pay.

Leave

Annual Leave (Vacation):

In Norway, employees are generally entitled to 21 working days of paid annual leave per year, though most collective bargaining agreements (CBAs) and many companies provide 25 working days. Employees over 60 are entitled to 31 days of leave annually.

Employees can take up to three weeks of continuous leave between June 1 and September 30, subject to mutual agreement with their employer.

Annual leave is compensated at a minimum rate of 10.20% of the employee’s total salary, typically paid in June. Some CBAs stipulate a higher rate of 12.00%, and employees over 60 receive 12.50% of their total salary as vacation compensation.

Leave entitlement is not accrued monthly. Employees who start work before September 1 are entitled to the full annual leave days, while those who start after September 1 are typically entitled to 5 days of leave.

Public Holidays

Public holidays that fall on the weekend are usually lost.

Sick Days

In Norway, employees receive sick pay directly from their employer for the first 16 days of sickness, at a rate of 100% of their salary. The maximum sick leave entitlement is 52 weeks. From the 17th day to the end of the 52-week period, sick leave is covered by Social Security sickness benefits, which are capped at six times the National Insurance base amount. The maximum benefit is 744,168 NOK.

To qualify for Social Security benefits, employees must be members of the National Insurance Scheme, have worked for four consecutive weeks, and have an annual income of at least 49,929 NOK.

Employees must submit a completed written sick leave form within three days of the onset of sickness. If the sick leave extends beyond three days, a doctor’s note is required.

Maternity Leave

The mother must begin her parental benefits 3 weeks before the due date. This period includes up to 12 weeks of leave during pregnancy and 6 weeks of mandatory leave immediately following the birth, which is exclusively for the mother.

Paternity Leave

Parental leave in Norway can be shared between the mother and father. Parents can choose between:

• 49 weeks of parental leave with 100% salary coverage, or
• 61 weeks and 1 day of parental leave with 80% salary coverage.

This leave includes both the “mum quota” and “dad quota,” as well as flexible weeks that can be divided between the parents.

For the 61 weeks and 1 day option, the national insurance will provide 80% of the regular income (up to the national insurance limit). If opting for the 49 weeks leave, parents will receive 100% of their income. Both options offer equal total payouts.

Other Leave

In Norway, employers are required to provide occupational injury insurance for their employees. If an employee is injured at work, they are eligible for compensation up to 72,662 NOK per year. If the injury results in an inability to work, the employee may receive disability compensation, which varies based on the extent of their incapacity.

To receive compensation, the employee must report the workplace injury to the Norwegian Labour and Welfare Administration (NAV) and provide evidence that the accident occurred at work.

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